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ASML and TSMC can disable chip machines if China intervenes

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Netherlands-based ASML and Taiwan-based TSMC have the means to disable the world’s most sophisticated chip-making machines if China intervenes in Taiwan, Bloomberg quoted people familiar with the matter as saying.

Two people, speaking on condition of anonymity, said US government officials have privately expressed concern to their Dutch and Taiwanese counterparts about what would happen in the event of a military intervention against the island, which is responsible for producing the vast majority of the world’s advanced semiconductors.

Two other people said that when the Dutch government approached the company about the threat, it reassured the authorities about ASML’s ability to disable the machines remotely. They added that the Netherlands was running simulations of a possible invasion to better assess the risks.

The remote shutdown applies to Netherlands-based ASML’s extreme ultraviolet lithography machines, known in the industry as EUVs, of which TSMC is the largest customer. EUVs use high-frequency light waves to print the smallest microchip transistors in existence, creating chips with more sensitive military applications as well as artificial intelligence uses.

The critical importance of EUV lithography machines

The EUV machine, which is about the size of a city bus, requires regular maintenance and updates. As part of this, the company could force a remote shutdown, said the people, who spoke on condition of anonymity. The Veldhoven-based company is the world’s only manufacturer of the machines, which sell for more than 200 million euros ($217 million) each.

The EUV machines have helped ASML become Europe’s most valuable technology stock, with a market capitalisation of more than $370 billion.

ASML has shipped more than 200 of the machines to customers outside China since they were first developed in 2016, and TSMC has bought more than any other chipmaker.

EUVs require so much maintenance that without ASML’s spare parts, they quickly stop working. On-site maintenance of EUVs is particularly challenging because they are located in clean rooms that require engineers to wear special suits to prevent contamination.

ASML offers shared service contracts to some of its customers, where it performs some of the routine maintenance itself, allowing customers such as TSMC access to its machines’ systems. ASML says it does not have access to its customers’ private data.

ASML moves to export controls to China under US pressure

ASML’s technology has long been the subject of government intervention to prevent it falling into the “wrong hands”. The Netherlands, for example, banned the company from selling EUV machines to China, fearing that the US would give its rival an advantage in the global chip war.

It was at the behest of the US that the Netherlands began this year to halt exports of ASML’s next most sophisticated chip-making machines. Even before the ban came into force, US authorities had asked ASML to cancel some planned shipments to Chinese customers, Bloomberg reported.

The company expects about 15 per cent of its sales to China this year to be affected by the latest export control measures.

Huawei succeeds in making its own advanced chips

However, the data suggests that the restrictions may have come too late for the US to stop China’s progress in semiconductors.

Huawei last year produced a smartphone to rival the iPhone using chips made on old ASML printers and tools from two US suppliers, Bloomberg reported in October.

Beijing has made technological self-sufficiency a national priority, and Huawei’s efforts to boost domestic chip design and production have been backed by the government.

ASIA

Syria will not follow Afghanistan’s Taliban model of governance

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In an astonishing statement, Ahmed Shará, also known as Abu Mohamad Jolani, the leader of the Hayat Tahrir al-Sham (HTS) said that he will allow the girls to go to schools and will not turn Syria like Afghanistan under the rule of the Taliban.

Jolani, the de facto ruler of Syria, said that he will distance himself from the Taliban’s strict policies on women’s rights, and said that Syria will not follow the Taliban’s mode of governance.  

Jolani, who brought down the government of Bashar al-Assad and also widely welcomed by the Taliban, said that he believes in the education of women and girls and will not make Syria like Afghanistan.

“Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal. The Afghan model cannot be applied here,” Jolani told a BBC reporter.

Jolani says that Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal.

Jolani’s comment came when the Taliban congratulated the HTS-led victory by Jolani over Assad’s regime after years of fighting. The Afghan Foreign Ministry celebrated Jolani’s victory through a statement and hoped Jolani can bring peace and stability in the country.

“It is hoped that the power transition process is advanced in a manner that lays the foundation of a sovereign and serve-oriented Islamic government in the line with the aspiration of the Syrian people; that unifies the entire population without discrimination and retribution through adoption of a general assembly; and a positive foreign policy with world countries the safeguard Syria from a threat of negative rivalries of foreign actors and creates conditions for the return of millions of refugees,” the statement by Taliban Foreign Ministry.

However, Jolan’s position on the rights of women and girls is in great contrast with the current view of the Taliban leadership. Women and girls have been banned from education and work since the return of the Taliban in August 2021, following the collapse of the Republic System and withdrawal of the US troops from Afghanistan. Girls and women are even banned from medical institutions and visiting public spaces.

Jolani says he has a plan to create a government based institution and a council chosen by the people. 

The situation got worse when the Taliban’s Ministry for the Promotion of Virtue and Prevention of Vice called women’s voices “immodest” compounding their exclusion from public life. This year, it has been marked as three years since girls were banned from pursuing education over sixth grade. Besides that, on December 20, 2022, the Taliban’s Ministry of Higher Education announced that women would be barred from attending public and private universities.    

In an interview with CNN, Jolani said that he has a plan to create a government based on institutions and a “council chosen by the people.”

“When we talk about objectives, the goal of the revolution remains the overthrow of this regime. It is our right to use all available means to achieve that goal,” said Jolani.

“The seeds of the regime’s defeat have always been within it… the Iranians attempted to revive the regime, buying it time, and later the Russians also tried to prop it up. But the truth remains: this regime is dead.”

Moreover, he also said the Syrian people are the “rightful owners” of the country after the ouster of Assad, and declared a “new history” has been written for the entire Middle East.

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Yoon summoned again for questioning on treason charges

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A joint law enforcement team investigating South Korea’s martial law case announced on Friday that it has issued a second summons to ousted President Yoon Suk Yeol, requesting his presence for questioning next week. The inquiry concerns his alleged involvement in the failed implementation of martial law.

The team has scheduled the questioning for 10:00 a.m. next Wednesday at the Corruption Investigation Office for Senior Officials (CIO) headquarters in Gwacheon, located just south of Seoul. This marks the second summons after Yoon refused to cooperate with the initial notice earlier this week.

The decision to hold the questioning on a public holiday appears to be a strategic move by the CIO, likely aimed at addressing security concerns. The office confirmed that the summonses were delivered via express mail and electronically to both Yoon’s residence and the presidential office in Yongsan. Notably, after Yoon’s team refused to accept the first subpoena, the CIO opted against delivering the documents in person for this round.

The investigation focuses on Yoon’s role in the December 3 martial law declaration, which he revoked following a vote in the National Assembly. If Yoon continues to disregard the summons without valid justification, the CIO may seek a court order to detain him for up to 48 hours.

Yoon faces allegations of sedition and abuse of office, charges that have gained traction since his dismissal by parliament last Saturday. His suspension from office remains in effect pending a decision by the Constitutional Court, which will determine whether he is permanently removed or reinstated.

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Xi Jinping champions economic diversification during Macau visit

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During a three-day visit to Macau commemorating the 25th anniversary of its return to Chinese sovereignty from Portugal, President Xi Jinping emphasized the importance of economic diversification and maintaining the “one country, two systems” framework.

Speaking at the swearing-in ceremony for Macau’s new Chief Executive Officer, Sam Hou-fai, Xi urged the administration to make economic diversification the city’s primary focus. Sam, the fourth leader since the 1999 handover and the first mainland-born Chinese official to hold the position, is expected to align closely with Beijing’s objectives to reduce Macau’s reliance on gambling. The gambling industry, which accounts for approximately 80% of Macau’s tax revenue, has been the cornerstone of its rapid economic growth in recent years.

“Macau should prioritize proper economic diversification,” Xi stated, calling for enhanced policy support and investment in emerging sectors. He also reiterated the significance of the “one country, two systems” principle, stressing its role in ensuring the city’s “prosperity and stability” for the long term.

Xi’s visit included stops at the Macau University of Science and Technology, where he explored laboratories focusing on traditional Chinese medicine and planetary science. He also attended a cultural performance at the Macau Dome and met with local stakeholders, according to Chinese state media. His trip marked a shift in tone, with Anthony Lawrence, founder of Intelligence Macau, noting that it was the first time Xi publicly praised Macau for its progress rather than delivering critiques or instructions.

Since the liberalization of Macau’s gaming monopoly in 2002, the city has attracted significant foreign investment, including from prominent US casino operators such as Las Vegas Sands, MGM, and Wynn Resorts. However, the economy struggled during the COVID-19 pandemic due to travel restrictions, and recovery has only recently begun.

On Friday, Macau’s casinos were bustling with visitors, while non-gaming initiatives like a stamp exhibition co-organized by MGM China and Beijing’s Palace Museum showcased the city’s efforts to diversify its offerings.

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